Avoiding Ordinary Income Taxation

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any way to get capital gains taxation and not ordinary
income taxation regarding the profits made from conversion of old factory building to condos & selling them after 2 years

Comments(2)

  • bumpnjump9th April, 2005

    I might have been vague, but I dont plan on using the primary residence as an investment. I would be living in it for a few years before considering any options. I would just be trying to get a distribution from my IRA to pay for closing costs and if any deposit was required.

    I am starting to look into the 5 year rule and it appears you may be right. Ill look deeper to see if there is a way around it. Anyone else know?

    Like you said, I am leaving the 5% deposit in the condo so i would do a loan to avoid the PMI.

    thanks for reply...

  • dontaskwhy28th April, 2005

    Can you buy rental property w/ an IRA? Does all rental income go back into the IRA?

    Are there any negatives associated w/ REI and a directed IRA?

    Is there a good website to read more about it?

    Thanks,

    Marc

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